The Bitcoin halving event could indirectly impact future regulations surrounding the cryptocurrency, according to Natalia Latka, policy director and regulatory affairs at Merkle Science. While there may not be a direct effect on regulations or regulators’ approach, the economic and market dynamics influenced by the halving event could lead to considerations around market stability and investor protection. If Bitcoin becomes more volatile during this time, regulators may be motivated to take action. Additionally, the halving could also affect energy consumption, potentially leading to regulatory scrutiny regarding the environmental impact of proof-of-work. In the United States, the regulatory framework for Bitcoin and cryptocurrency remains unclear. The absence of clear guidelines often leaves businesses uncertain about compliance with current and future interpretations of laws. In the United Kingdom, the approach to regulating crypto assets involves retrofitting existing regulations, which can create confusion and operational inefficiencies for businesses. The European Union has introduced bespoke regulation for cryptocurrencies, but further clarifications are still needed. Overall, the Bitcoin halving event has the potential to influence regulators’ thinking, even in regions with existing regulatory frameworks.
Possible creative re-expression: Potential impact of Bitcoin halving on cryptocurrency regulation may be felt indirectly